(Updates with closing levels)

By Brigid Riley

TOKYO, July 16 (Reuters) - Japan's Nikkei share average

rose on Tuesday, tracking gains in Wall Street, as investors

assessed whether an assassination attempt on U.S. presidential

candidate Donald Trump increased his chances of winning the

November elections.

The Nikkei closed 0.2% higher at 41,275.08, and the

broader Topix finished up 0.34% at 2,904.5.

Japan's markets were closed on Monday for a public holiday.

U.S. stocks ended higher on Monday as bets of a second Trump

presidency raised hopes of a looser regulatory environment.

"If Trump were to aggressively implement measures like tax

cuts, the stock market is likely to rally," Masahiro Ichikawa,

chief market strategist at Sumitomo Mitsui DS Asset Management,

said, adding that these expectations prompted buying among

Japan's high tech and other shares on Tuesday.

Shares of defence-related Mitsubishi Heavy Industries ( MHVYF )

and Kawasaki Heavy Industries ( KWHIF ) jumped 5% and

6.2%, respectively, to become top gainers, as speculation of a

Trump win spurred so-called "Trump trades."

Oil companies were among the best performers by

sector, climbing 1.5%.

Profit-taking in the afternoon session, however, capped

gains.

The market was also on the lookout for company earnings,

with many participants expecting export firms to announce

increased revenues amid stubborn yen weakness.

The yen had strengthened against the dollar since Thursday,

with many suspecting Tokyo may have intervened to lift the

currency away from 38-year lows.

But amid the growing probability that the Federal Reserve

will begin cutting interest rates, investors are looking for

more clarity on the yen's path, said Masayuki Kubota, chief

strategist at Rakuten Securities.

"The market is trying to determine ... whether this is a

temporary appreciation of the yen and it will weaken again, or

whether the yen's slide is over because the U.S. is about to

begin cutting rates."

On Tuesday, electronic components maker TDK Corp ( TTDKF )

rose 5.4% and chip-making equipment giant Tokyo Electron ( TOELF )

gained 1.1%.

Shares of Uniqlo parent Fast Retailing ( FRCOF ) fell 1.3%.